How non-QM and private loans help brokers finance fix-and-flip and condo deals

How brokers can find solutions when conventional loans fall short

How non-QM and private loans help brokers finance fix-and-flip and condo deals

Even with elevated interest rates throughout 2025, the non-QM and private lending space has seen a surge in loan originations. One mortgage broker in the space sees the two loan types helping to provide loans in both the condo and fix-and-flip sectors, where conventional loans may not be an option.

Trent Hufstetler (pictured top) is a mortgage advisor and officer at Mpire Financial. As a broker who works in the non-QM and private lending space, one of his focuses is helping investors not only find financing for their purchase but also understand if it’s a good deal.

“We want to be a fiduciary to our clients,” Hufstetler told Mortgage Professional America. “We’ll see how a project can look if you're looking at a fix-and-flip. Or if they want to hold it, we help them underwrite the deals. A lot of times, if it doesn't fit what the lender looks for in their guidelines, and it can't get the funding, it's probably not a good house to buy.”

While they are based in Florida, he said, for some investors, they help them look at other markets for fix-and-flip loans. Some of those clients work to build a portfolio of rental properties using the BRRRR (buy, rehab, rent, refinance, and repeat) method.

“We work with clients where sometimes they want to hold a property, they do the BRRRR method,” he said. “It doesn't work as well in Florida, so we're looking at some other markets that it works in, like Ohio. Ohio has a really good market for fix-and-flip.

“You can buy at the right level, and then you can take it, and when you go to exit on the refi, you can rent that out for the mortgage. So they always cash flow.”

Helping borrowers improve qualifications

He also assists borrowers who may not be eligible for a conventional loan for a particular purchase.

“I like to solve issues for people who do business purpose stuff, in terms of the self-employed,” Hufstetler said. “They take and write everything off on taxes. They’re going to go to a big lender, like U.S. Bank or Chase, and they’re going to go, ‘I see here you made no money.’ The borrower says they made $100,000, but they wrote $90,000 off.”

Hufstetler can sit down with those clients and convince them that it might be better not to write off as much and invest in properties instead.

“What I can do is walk the person through,” he said. “I tell them, ‘Let’s look at the tax brackets together. If you did what this guy wants you to do, how much would you pay this year? And if you had to do it for another year, you’d have to pay about the same again, because taxes don’t fluctuate too much.’”

He shows them what they might be able to write off in a new investment property compared to what they’re writing off in income. Additionally, he shows them the equity they won’t earn over those two years of not owning the property and makes that part of the equation.

“Now we know how much home prices are,” Hufstetler said. “We punch the numbers, and I say, ‘Here’s your equity lost between two years, and here’s the cost being paid to Uncle Sam. Now, would you rather pay this number over here, which could be $80,000 between taxes and equity lost, or would you like to pay just a little bit more in fees at closing to be able to secure the property now?’

“Most entrepreneurs are like, ‘Yeah, I’ll take this.’ It’s just an easy way to do it.”

Solving challenging deals

Like many Florida brokers, Hufstetler has witnessed firsthand the challenges in the state's condominium market.

“A lot of the condos in Florida become unwarranted,” he said. “If it’s a litigation issue that’s actually due to safety, nobody’s touching it. But if you have something that’s unwarrantable because there are too many investors in the space, or there’s something else going on, you can get somebody else who will lend on it.

“In the non-QM space, we’re able to secure deals better. So, it’s great to have these options available and working with a broker like us, we’re able to just do it, price it quickly, and then we’re staying on track.”

He enjoys the options that non-QM and private lending provide at Mpire Financial, allowing him to find solutions for challenging deals.

“We have a great way to source all the lenders we’ve worked with,” Hufstetler said. “We even have a scenario desk that says, ‘Hey, this is a weird one.’ And then all of our lenders who do bank statement loans will come back and say they can do it. So, you can source a lot faster.”

Hufstetler has been able to solve mortgage loans that have been rejected in the agency space. Some of his clients were on the verge of giving up getting something financed before coming to the non-QM space.

“I’m thankful it helps me be the expert I need to be,” he said. “My clients … are used to being told no so often, and then people give up. It’s great to be able to breathe new life into it. Your level of communication has to be a little bit higher and on point, because you’re explaining things that people are hearing maybe for the first time.”

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